2020 IRA COVID-19 Distribution for '21 Taxable Income and Repayment

[benorr05]

I have two questions regarding COVID IRA distributions from 2020.  I took a distribution from an IRA in 2020 for COVID Relief.  I spread the taxable portion over the '20, '21, and '22 tax years when I input the 1099-R for 2020.  I'm not seeing where I put the income for my 2021 taxes, as I don't think I'll receive another 1099-R for 2021.  First question, where do I put this on income (or can my turbotax file from '20 help input this into '21)?

I've also repaid some, not all, of the distribution in 2021 to help lower the taxable amount for this year.  I plan to continue paying off in '22 as well.  This should reduce the taxable amount for my '21 taxes, but I'm not sure where that amount goes.  I started with an IRA contribution, but it seems like its not the correct spot as there weren't any questions about this being repaying a COVID distribution.  In fact, it increased my tax bill because it showed that I over contributed to my IRA for '21.  This shouldn't be the case as all the contributions to the IRA were to repay the distribution I took in '20.  Any help available for where to put this information?

[DaveF1006]

It depends.  For 2021, you do not need to input anything. For your 2020, return, there was an 8915-E generated and it will generate this year reporting the income that need to be reported this year. It will also generate next year as next year will be the last year of repayment.

1. As far as reporting a repayment, visit federal>wages and income>IRA, 401(k), Pension Plan Withdrawals (1099-R)>start.
2. Did you get a 1099-R in 2021?  Say no
3. Have you ever taken a disaster distribution before 2021? (This includes COVID disaster) Say yes
4. Did you take a disaster distribution at any time between 2017 and 2020? yes
5. At this point you will need to stop because IRS has not finalized their instructions at this time. You will need to revisit this area when the release is made.

[Wyatt5]

Thanks for the question.  I am in the same boat with the same scenario.  Looking forward to the update.

[DianeW777]

The IRS is not yet ready to release this form and the information below will assist you once they release it in final  version.

To record one third of a distribution you were allowed to take without penalty due to COVID, you can use the steps below. 

1. Sign into your TurboTax account > Select Wages and Income > Scroll to IRA, 401(k), Pension Plan Withdrawals (1099-R) > Edit/Add
2. Continue through Form 1099-R entry if applicable and select I took out this money due to a qualified disaster
3. Continue to enter the requested information
   1. Form 8915-F is used to report a disaster-related retirement distribution, and any repayments of those funds. It also allows you to spread the taxable portion of the distribution over three years, if needed and report prior year distribution amounts which are to be taxed in 2021.
   2. We'll complete and include Form 8915-F with your return if you qualify. Just enter your Form 1099-R and answer a few questions to determine your eligibility as pointed out by @DaveF1006

NOTE:  This Form 8915-F is still in IRS draft form.  Continue to check the federal forms availability for a date of release.

• What is Form 8915-F?

@benorr05

@Wyatt5